- Aegon research highlights how financial priorities differ for under-50s, 50-somethings and the over 60s
- Over-50s place top priority on state pension clarity, while under-50s prioritise new initiatives to get people on the property ladder
Consumer research carried out for Aegon UK by Opinium immediately after the general election result highlights a ‘generation gap’ in terms of what policies people want from the new Labour Government to help with planning their financial futures.
The top policy priorities relate to state pensions, retirement income needs, social care and getting on the property ladder – but stark differences between the priorities of different age groups highlight an intergenerational balance challenge facing the new Labour Government.
When asked to pick from a range of options, three in 10 people (30%) called for long-term clarity around the state pension and the triple lock to be a priority. Unsurprisingly, a whopping 45% of those over 60s saw it as a priority, while 26% of 50-somethings went for this option but only 21% of under-50s picked it.
Meanwhile a quarter (24%) of those surveyed prioritised raising the personal allowance for state pensioners, in line with the Conservatives ‘triple lock plus’ proposal. This reflects ongoing concerns that even those with no income above the new state pension could face an income tax bill in the next two or three years because of projected state pension increases taking them above the frozen personal allowance threshold. A similar age pattern emerged here as 45% of 60+ plumped for this, compared to 17% of those in their 50s and 12% of under 50s.
The top priority for the under-50s group (29%) was ‘new initiatives to help me / younger generations get on the property ladder’. Only 14% of over-60s went for this option and those aged 50-59 were, once again, in the middle as 20% backed this as a priority. Labour’s early focus on the property market will be welcomed here.
Steven Cameron, Pensions Director at Aegon, commented:
“This fresh research shows that the new Labour Government face a tricky balancing act in meeting financial priority expectations of different generations of people across the UK.
“It’s clear the over-60s have very different priorities for the new government compared to the under-50s’ wish list.
“The 60+ cohort prioritised long-term clarity around the state pension and the personal allowance for state pensioners to be raised to avoid those with no income other than the new state pension ending up with a tax bill. While the incoming government has announced a Pension Schemes Bill and a pensions review, neither focusses on the state pension.
“The under-50s top priority (29%) was helping them or younger generations get on the property ladder, something Labour has highlighted as an important focus in their first days in government.
“Interestingly for the under-50s and those in the first decade (between 50-59) of their Second 50, ‘pension dashboards’ to find and view all pensions securely, in one place, was a policy priority.
“The industry has been working with government and regulators on this, and we hope the new government will endorse the current timeline, which would see dashboards become available to the public in 2026.
“Another priority concerns social care and what individuals may need to pay for this, which was an option that more than 20% of all three age cohorts prioritised but is something the Labour Government has said little on so far.
“The new government has clearly stated their ambition to bring about real change. When it comes to individuals’ longer-term financial planning, it will be important to ‘mind the generation gap’ and examine policy choices through the lens of intergenerational fairness.
“Generation by generation, on average we’re living longer, so balancing short-term needs with longer-term savings has never been more important.”
